Computing Income Statement Subtotals

The following selected items are taken from the adjusted trial balance of Dion Inc. at December 31.

Adjusted Trial BalanceSelected AccountsDebitCreditSales revenue$$3,000,000Cost of goods sold1,600,000Selling and administrative expenses900,000Loss on sale of investments50,000Interest revenue15,000

Assuming an income tax rate of 25%, determine the following amounts.

• Use a negative sign only to indicate a loss.

ItemAmounta. Gross profit

Answer

b. Operating income (loss)

Answer

c. Nonoperating income (loss)

Answer

d. Income tax expense

Answer

e. Net income (loss)

Answer